alt Hacker NewsFirst, I never said the crash was over.
Second, this is a good thing. It is a success not a failure. I mean it's bad for the investors but China has decided people having affordable housing is more important than the investors. The investors aren't being bailed out.
Why is this a good thing? Because the only way we can correct Western housing markets at this point is by doing what China has already done. That is, crashing the housing market. And that is political suicide so we are where we are and it's not going to get better anytime soon.
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Do you think the housing market can crash on its own?
Here is my crazy theory: After only one year of the second Trump admin, the US now seems to have damaged one of its greatest assets: namely attracting the cream of the crop. One second order effect of this is now we are entering population decline. If it becomes terminal, who is going to take out a 30 years mortgage on the overpriced houses? As boomers die off, we might see a collapse. There might be a scenario where a future Trump like character fumbles the bailout(or refuses to do it) and the housing market finally is allowed to burst.
How is “speculation leads to crashing” mean that China is over their speculation phase? It took Japan a decade after their bubble to pop for them to completely detach from property speculation. China is basically Japan 2.0+ in this regard. Hopefully it lands at a Japanese equilibrium where property is priced more sanely, but they are definitely not there yet. My family owns a villa in a tier 88 (at least it has a HSR station and an airport now) so I have skin in this game.